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Tds on professional service

Dev Kumar (Accounts Manager) (107 Points)

05 January 2021

if a person provide a bill of Rs 20K as a professional, TDS not deducted by a company on that bill. next month he provide another bill of same amount, then company is liable to deduct TDS on 20K or 40K as his limit crosses the eligibility. Second question is what amount and month is to be shown in TDS return?

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CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 05 January 2021

No ,194j is applicable on seperate bill as in your case bill amount is 20000 rupees less than 30000 rupees.

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CA Sachin M Jain (CA | GST | Refunds | Advisory | Litigation) (1337 Points)
Replied 05 January 2021

The said company is not liable to deduct TDS on threshold upto Rs. 1,00,000 or Rs. 30000 per Invoice.
If at all the company will deduct, then the company needs to deduct on Full Amount (including the previous invoices).

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Smit Shah (524 Points)
Replied 05 January 2021

Liable to deduct on whole amount i.e.60000

Balamurali Unnithan MS (STUDENT) (1631 Points)
Replied 05 January 2021

As per 194 J - TDS on professional income , amount exceeds Rs .30000 , then only tax deduction applied !

Krishna Chaudhary (Accountant) (4531 Points)
Replied 08 January 2021

TDS applicability when single bill exceeds 30,000 a lump-sum exceeds 1 lakh

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Smit Shah (524 Points)
Replied 08 January 2021

Please refer clause (B) provisio to section 194j it is during the financial year and not in a single transaction.

Krishna Chaudhary (Accountant) (4531 Points)
Replied 09 January 2021

As per Section 194J, each item or independent payment has a threshold maximum limit of INR 30,000. TDS under this section also applies for the fees or remuneration paid to the company's director even if the payment is not part of the main salary. In such cases, the INR 30,000 limit does not apply here.